Employers today implement and manage incentive programs for employees. These programs include cash and non-cash incentives for employees. Currently, once the incentive is awarded the employer loses visibility into how the incentive is used.
A corporate prepaid account relating to healthcare can be used by an employer to load employee health savings account/healthcare reimbursement account/flexible spending account (HSA/HRA/FSA) contributions, making it convenient for employees to access their funds at the point of purchase or service, as the case may be. The card is loaded by the employer (or third party) with the employee's contribution dollars and the employee spends against its value for qualified expenses. Another use of a prepaid card in the corporate healthcare arena is a simple gift card, as part of an incentive program. Closed loop cards are most commonly used in such applications. They are typically given by an employer to an employee for participation in a corporate healthcare program. An example may be that an employer would offer $100 gift cards to an athletic store for employees who complete a health screening on the company's intranet site.